Moorfield Group has acquired a 56,764 sq ft logistics asset in the West Midlands for £5.325m on behalf of Moorfield Real Estate Fund V (MREFV).
The logistics property, which was acquired from an unnamed UK institutional investor, is the first to complete as part of Moorfield Logistics Partners (MLP), Moorfield Group’s latest logistics property investment vehicle, which will be funded by MREFV.
DURA Automotive, which specialises in the design, engineering, and manufacturing of components for the automotive industry, occupies both warehouses on two separate leases with a WAULT to expiry of 3.60 years, at a combined passing rent of £380,441 per annum (£6.70/sq ft). The sale price reflects a net initial yield of 6.70%.
Chris Perera, senior investment manager at Moorfield, said: “We successfully sold all our outstanding logistics investments in Q4 2021 and see now as an opportune moment to start investing in the sector again. We will focus as before on single-user, mid-box urban logistics assets, with a view to creating a high-quality portfolio of well-located investments.
“Today’s acquisition, a modern, fit-for-purpose warehouse close to one of the country’s major urban conurbations, is illustrative of the type of property we will be seeking to acquire. The UK logistics market has strong underlying fundamentals and the mismatch between supply and demand will help drive rental growth, which is why we’re positive on the outlook for the sector despite the wider macroeconomic circumstances.”
Moorfield was advised by Savills and Atlas Real Estate advised the vendor.
